BlackBerry to Take Nearly $1 Billion Charge

9/20/2013 4:04PM

BlackBerry expects to report a hefty operating loss of nearly $1 billion in its fiscal second quarter due to an inventory buildup of unsold smartphones, and will lay off 4,500 employees. Steven Russolillo reports on the News Hub. Photo: AP.

This transcript has been automatically generated and may not be 100% accurate.

... the the ... breaking news BlackBerry it released its beings just minutes ago ... it announced it expects to report a hefty loss of nearly one billion dollars ... you can even feed buildup of unsold black Reses Kane's muffins ... but it's in the mid twentieth welcome to the New Saab on Michael Casey into Simon Constable ... joining me now to discuss is the will Street gentle money the reporter Steve to run the saloon was the recent good morning ... morning so ... that haven't ... been updated to include that was the only game in the U S nonetheless pointed comments tomorrow going to feel sorry that I know I know this is really ugly so as he makes me got this prerelease placards false report last night at the end of next week's ... pre Nelson numbers now not very good puppy is the report about a billion dollars ... in lost operating loss for the most recent quarter its revenue figures came in at one point six billion that's about half ... of what Wall Street analysts were expecting so analysts expectations are always so well off maybe a little additional older children on the button that much is this that was a was this was the fun in this post to come back to revive the company to get all of the new look of the new system really so they get a bit put out new phones over the past few months since the bayonet they said that they sold three point seven million BlackBerrys but the problem is that most of those brackets and older devices not actually the new devices that the company ... was supposed to revitalize the company so ... the layoffs is something that we've reported on last week that there is in the event of eleven forty two was that that ... that they confirm that isn't to say that I don't get caught but remember this is a company completely imploded yet this is that it is says unless it's a sad story mean is a company that had about half of the smartphone market share ... of five or six years ago and now the data to reach three percent according to ... the ages of this was this is how ... fickle the market can be in this high heel exactly Smartphone Into noted ... that you haven't got the in thing that's it this Blackbird was the info I didn't know the in the not so long ago and clearly now not so much for the stock has elicited use tumbles down twenty percent dividend is the dentist are seeing Lachman admitted the downed a tough tough day for the market yet that that was the more than a hundred points ... aam you know this is coming after that the Fed ... news that really sort of ... surprise people with that so that was not to start tapering its stimulus plans ... IPO would have been a bit of a rally or a big rally on that on Wednesday the market's comeback will that both yesterday and today ... people so that they just think what this means anything with what is the second a reader that has him it was the missing its billion in the U S the good news on Wednesday what they learned that ... although the worry is why is the Fed not cutting back on is an awesome that's the underlying issues that mean the economy is not as strong as the Fed thought it was going to be a few months ago maybe you know and and that's it that's it from the comfort or so we've seen the job supports the inflation ... housing at all to sort of been okay binoculars I sensibility healthy and effective X unit coming down because people are concerned about fundamental issues rather than right distance of good news is bad news Dhanya twittering right right if it was announced it was this unreality comes ... from reality I get sucked into intense today but you look at some of these ... move the market performances this year I mean the Essen P five hundred up about twenty percentile around record highs it means that today yes and and down the favorites though it in two days off the record high levels so ... the worry now is this old looking a little bit of guess we use that word ... because perhaps that is what I'm going to throw another couple with you dying future ... quadruple which drew only a guide to the Welsh Labour was that it was fun to quadruple witching day what is the son is this the confluence of events a lot of stock options expiring in futures options expiring in Smith thinks for these major events that all happened once and Monday ... it has the potential to certain Jews trading bonds because people are closing positions and conserve repositioning themselves after this happens so ... you see this once every three months ... the seat right thing but it's a nice bite when this happens ... and I and ... so that sort of sometimes freaks involves only now do you get a mixed message from people in stocks and markets not ok so is this really what's driving the market ... not necessarily by ... the SEC is having some ... of ... the closed out positions but stocks sell stocks with the Justice and ... cook clean out the options book so with the ruling was exactly so it may not be the trigger is the catalyst for the move but it could exacerbate whatever move what was it was already taking place on some of the institutions of GDP ... the FOMC